Yahoo chief Marissa Mayer says the company remains "very confident" in its value - even as its disclosure that information on more than 500 million email accounts was stolen could lead Verizon Communications to renegotiate or abandon its proposed $US4.8 billion ($A6.3 billion) deal.
"In addition to our continued efforts to strengthen our business, we are busy preparing for integration with Verizon," Mayer said in remarks announcing Yahoo's third-quarter 2016 results.
"We remain very confident, not only in the value of our business, but also in the value Yahoo products bring to our users' lives."
The internet media company posted revenue of $US1.31 billion on Tuesday, in line with Wall Street expectations. It reported adjusted earnings per share of 20 US cents, beating analyst forecasts of 14 cents.
But revenue excluding traffic acquisition costs (money it pays to search partners including Google and Microsoft) fell 15 per cent year-on-year to $US857 million.
Yahoo said it was not holding an earnings call or webcast for third-quarter earnings, citing the "pending transaction with Verizon".
Regarding the security breach, Mayer shed no new light on the incident.
"We take deep responsibility in protecting our users and the security of their information," she said.
"We're working hard to retain their trust and are heartened by their continued loyalty as seen in our user engagement trends."
Verizon - along with millions of Yahoo users - was caught unawares by the massive security breach. When Yahoo announced the user-info breach in September, Verizon said it had been informed of the scope of the breach only two days earlier.
Last week, Verizon's top lawyer said the Yahoo breach represented a "material" event that could open to door to the telco renegotiating the terms of the deal.
"I think we have a reasonable basis to believe right now that the impact is material and we're looking to Yahoo to demonstrate to us the full impact," Verizon general counsel Craig Silliman said.
"If they believe that it's not, then they'll need to show us that."
In response, a Yahoo spokesman said: "We are confident in Yahoo's value and we continue to work towards integration with Verizon."
Yahoo reached the deal with Verizon in July to sell its declining web businesses for $US4.8 billion, plus an estimated $US1.1 billion in payments for restricted stock at closing.
The telco sees synergies in combining Yahoo with AOL, which it bought for $US4.4 billion last year, to achieve greater audience and advertising scale. Previously, the companies had said they expect the deal to close in the first quarter of 2017.
